do i build a team?

Question

for wholesaling do i build a team? how would i have an RE Agent get commission if i am not the buyer or the seller.

what about having someone run an inspection so i can find out how much it needs in repairs?

what else do i need before a wholesale

Manny Cirino · Answer

The misconception of builing a team:

People talk about it as if you are going out. Interviewing people and drafting them to your team as if it a career opportunity. This is not the way it works. You do need a team but the way a strong team is build is either by working with people from your own SOI, your close peers. a cousing who works construction and uncle who is an electrition a nieghbor who is a plumber and aunt who is a mortgage officer. This is the most common way to build that circle.

The other way is by building relationships. Find people proven from your local REIA. The truth is you will have to pay for services a few times and after the pros see you are person of business and that you use there services a bond will eventually form.

As far as using a Realtor to wholesale and pay them a commission, well I have to say you still have missed the point to wholesaling you are looking to work directly with home owners no realtor should be in the equation. All you need is you, the seller a buyer and a title company or attorney to complete the transaction.

The Realtor if at all you need them it will be to pull comps and most in your local REIA will do you the favor since that is easy to do with the MLS.

Kelsen J. · Answer

@Manny Cirino undefined

Ahh I see. Thanks for the response Manny!!

John Horner · Answer

I would disagree with this whole statement.  If you don't have MLS access, a realtor is necessary to pull comps.  We list the comps our agent sends us in our informational packet on each property.

I would only do an assignment through a title company, do not take money from an investor outside of closing.

I would also consult an RE attorney about the RE laws specific to your state and to draft your contract for you.

Andrew Malik · Answer

You DEFINITELY need a title company to help you with closing.  There are ton of things that could be wrong with title and you would never know.  Not to mention they make it a whole lot easier if you're wholesaling a short sale and need to double close.  In my opinion, a title company is an expense well worth the cost.

Manny Cirino · Answer

The titles companies gets paid by the closing cost. Within those closing cost there are something that are transaction fees the title company can keep and some they but pay out. example my county charges $7 for a title search the title companies charges $75.00 they profit $69 just off of that and many others. but there are things like fees for recording a new deed or city & state taxes that they have to include so they dont pay out of pocket.

But To answer your question I do pay cost just not as high as the buyer and seller do. In my area all the title companys no longer accept cashiers check etc... they all issue the payout via wire transfer so i always have to pay a wiring fee, title search just to make sure the deal doesn't fall through. and I $10 per page they  process that is usually 8 pages a 6 page contract an assignment addenda and an assignment contract. usually pay around $200.00

Kelsen J. · Answer

@Manny Cirino undefined

Do you have to pay the title company a fee for participating in the transaction? Is that an expense for the wholesaler, cash buyer or motivated seller?

Manny Cirino · Answer

"You don't need a title company or attorney if you proceed this way. Building a team takes time. You will have to do your first few deals yourself."

This is truly not recommended especially for a seller who is in distress. There are all types of title issues that can come cause troubles. The fact is if you are going to close and sell to an investor and you do not use a title company. how are yo gauranting they will pay you your assignment fee. A hand shake and a quit claim deed is not way to conduct business.

No if your a simple bird dog an you work under an investor and he is paying you a finders fee then that I could see. Other than that find the deal, open up escrow and let a professional facilitate the neccessary paper work.

Matthew Baumberger · Answer

You do no need a Realtor for wholesaling. The point is to work directly with the buyer and avoid that commission. Then you can assign the contract to an investor. You don't need a title company or attorney if you proceed this way. Building a team takes time. You will have to do your first few deals yourself.

do i build a team?

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